Overview of Financial System in Bangladesh Introduction: A financial system is a system that to channels funds from lenders to borrowers, to create liquidity and money, to provide a payments mechanism, to provide financial services such as insurance and pensions and to offers portfolio adjustment facilities. A developed financial system is one that has a secure and efficient payment system, security market and financial intermediaries that arrange financing and derivative markets and financial institutions that provide access to risk management instruments. The present structure of the financial system in Bangladesh comprises of various types of banks, insurance companies, and non-bank financial institutions. Bangladesh Bank is at the top of the banking system and is accountable for assuring prudential administration and central banking activities for all types of banks operating within the banking industry. On the other hand, the Securities and Exchange Commission (SEC) of Bangladesh is the regulatory body for stock-market related activities. The financial system of Bangladesh is comprised of three broad fragmented sectors: 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 legal system/ legislation 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. The informal sector includes private intermediaries which are completely unregulated. The financial market in Bangladesh is mainly of following types: Money Market: The primary money market is comprised of banks, FIs and primary dealers as intermediaries and savings & lending instruments, treasury bills as instruments. There are currently 15 primary dealers (12 banks and 3 FIs) in Bangladesh. The only active secondary market is overnight call money market which is participated by the scheduled banks and FIs. The money market in Bangladesh is regulated by Bangladesh Bank (BB), the Central Bank of Bangladesh. Capital market: The primary segment of capital market is operated through private and public offering of equity and bond instruments. The secondary segment of capital market is institutionalized by two (02) stock exchanges-Dhaka Stock Exchange and Chittagong Stock Exchange. The instruments in these exchanges are equity securities (shares), debentures, corporate bonds and

1. Financial analysis & Control
PresentationTopic- Overview of Financial
System In Bangladesh
Name ID
Borhan Uddin 123-11-2762
Jahidul Islam 123-11-2792
Aminur Rahman 123-11-2752

2. Overviews
Financial Markets
Regulators & Institution
Insurance Development & Regulatory Authority
Securities Exchange & Commission
Micro credit Regulatory Authority
Specialized Financial Institution

3. The Financial System in Bangladesh
Formal Sector
Semi-Formal Sector
Informal sector

4. Money Market
Capital Market
Foreign Exchange Market

5. Regulators & Institutions
•Banks: There are 47 scheduled and 5 non-scheduled banks.
•Non-banking Financial Institutions(NBFIs): There are 31 NBFIs.

6. Insurance Development & Regulatory Authority
•There are 18 Life and 44 non-life insurance companies

7. Securities & Exchange Commission
(REGULATORY OF CAPITAL
MARKET INTERMEDIARIES)

8. Micro-credit Regulatory Authority(MFIs Authority)
There are 599 Micro Finance Institutions