Sunday, July 15, 2018

5 Facts About Bangladesh Bank That You Should Know

Bangladesh Bank

Bangladesh Bank is known as the central bank of Bangladesh. It controls all the bank in Bangladesh. It was established on 16 December 1971. Bangladesh Bank is a member of the Asian Clearing Union. Current Governor of this Bank is Fazle Kabir who is a Bangladeshi economist and banker. Bangladesh Bank is the first bank to introduce a dedicated hotline number (16236) for the general people to complain about any banking issue. Its Headquarter is in Dhaka Bangladesh. Its Reserves is BDT 2565 billion Taka (US$33 billion). The official website is 

History of Bangladesh Bank: 

After the war of 1971, the Government of Bangladesh declared the State Bank of Pakistan as the central bank of Bangladesh. After that, in 1982, the first reform program was started successfully, wherein the government denationalized two of the six nationalized important commercial banks.  They also permitted private local banks to compete in the banking sector at the same time. To deal with the various problems of the banking sector, a national commission on Money, Banking and Credit was appointed in 1986.  In addition to, a number of procedures were taken for the recovery targets for the commercial banks. In 1990, with the assist of the World Bank, the Financial Sector Adjustment Credit (FSAC) and Financial Sector Reform Program (FSRP) were formed properly. After the expiration of FSRP in 1996, the Government of Bangladesh formed a Bank Reform Committee (BRC). A.N.M. Hamidullah was the first Governor of Bangladesh Bank (18 January 1972 – 18 November 1974)

Bangladesh Bank

Organization and branch offices of Bangladesh Bank

The highest official of Bangladesh Bank is the governor. The seat is in Motijheel, Dhaka. The governor mainly chairs the board of directors in the bank. The executive staffs (supervisors) are headed by the governor. They are generally responsible for the bank's daily affairs. Bangladesh Bank also has several numbers of departments under it such as Debt Management, Law, and so on. Every department is headed by one or more general managers. The Headquarters of Bangladesh Bank is located in Motijheel, which has two general managers.

There are Ten Branch offices of Bangladesh Bank. These are:

          1. Sadarghat
          2. Motijheel
          3. Bogra
          4. Rajshahi
          5. Chittagong
          6. Mymensingh
          7. Barisal
          8. Sylhet
          9. Khulna and
          10. Rangpur

Functions of Bangladesh Bank: Bangladesh Bank has many important functions to perform such as managing foreign exchange, maintaining price stability, and regulating the banking sector all over the country. Bangladesh Bank is considered as both the government's banker and the banker's bank at the same time. The major functions are given below:
      1. Promotion and development of national financial markets.
      2. Formulation and execution of monetary and credit policies.
      3. Issuance of currency notes.
      4. Supervision and regulation of banks and non-bank financial institutions. 
      5. Managing a deposit insurance system.
      6. Management of all international reserves.
      7. Supervision and Regulation of the payment system.
      8. Prevention of money laundering 
      9. Acting as banker to the Government.
      10. Collection of credit info.

Bangladesh Bank Award: Bangladesh Bank award was first introduced in 2000. The winners are:
          1. Nurul Islam (2009)
          2. Rehman Sobhan (2000)
          3. Mosharraf Hossain (2011)
          4. Swadesh Ranjan Bose and Muzaffar Ahmed (2013).
          5. Mahbub Hossain and Azizur Rahman Khan (2017).

Final Thought: Bangladesh Bank plays a very important role to control the economy and helps for the development of the national financial market in Bangladesh. I think you have got a very clear concept about Bangladesh Bank. If you have any question or suggestion, feel free to share with us. Thanks.

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