2. Introduction of banking industry in
Bangladesh
• Bangladesh’s own banking system started at 16th December, 1971,
however the truly banking system was started at 1st January, 1972.
• After the independence, banking industry in Bangladesh started its
journey with 6 Nationalized commercialized banks, 2 State owned
Specialized banks and 3 Foreign Banks. In the 1980's banking industry
achieved significant expansion with the entrance of private banks.
3. structure and composition of the banking
industry
types of banks numbers
SOCB 6
SDB 2
conventional PCB 31
IS PCB 8
FCB 9
total 56
11%
4%
55%
14%
16%
compositionof bank industry
SOCB SDB conventional PCB IS PCB FCB
5. Interest rate scenario and trend
September
(2015)
October November December
January
(2016)
February March April May June
Deposits 6.66 6.58 6.46 6.34 6.21 6.1 5.77 5.77 5.67 5.54
Advances 11.48 11.35 11.27 11.18 11.05 10.91 10.64 10.64 10.57 10.39
Spread 4.82 4.77 4.81 4.84 4.84 4.81 4.87 4.87 4.9 4.85
6.66 6.58 6.46 6.34 6.21 6.1 5.77 5.77 5.67 5.54
11.48 11.35 11.27 11.18 11.05 10.91 10.64 10.64 10.57 10.39
4.82 4.77 4.81 4.84 4.84 4.81 4.87 4.87 4.9 4.85
rate
interest rate
6. Balance sheet
sample balance sheet of banks
property and assets amount
Cash ***
Cash in hand ***
Balances with Bangladesh Bank and its agent bank(s)
Balances with other Banks and Financial Institutions In Bangladesh ***
Outside Bangladesh ***
Money at call and short notice **
Investments
Government ***
Others ***
Loans and advances
Loans, Cash Credits, Overdraft etc ****
Bills discounted and purchased ***
Fixed assets including land, building, furniture and fixtures ***
Other assets ***
Non-banking assets ***
TOTAL ASSETS *****
LIABILITIES AND CAPITAL
Liabilities
Borrowing from other banks, financial institutions and agents ***
Deposits and other accounts
Current deposits & other accounts, etc. ***
Bills payable ***
Savings bank deposits ****
Fixed deposits ***
Bearer certificates of deposits ***
Other liabilities ***
TOTAL LIABILITIES ****
SHAREHOLDERS' EQUITY
Share Capital-Paid up capital ***
Statutory reserve ***
others reserves ***
total liabilities and equity *****
7. Concentration of assets and deposits
Size of assets of top 10 & 5 banks and others Size of deposit of top 10 & 5 banks and others
8. Regulation of banks
Bangladesh Bank is the central bank of Bangladesh and the apex regulatory body for the
country’s monetary and financial system. It was established in Dhaka as a body
corporate vide the Bangladesh Bank Order, 1972 (P.O. No. 127 of 1972) with effect from
16th December, 1971.
• Formulation and implementation of monetary and credit policies.
• Management of Bangladesh’s international reserves.
• Issuance of currency notes.
• Regulation and supervision of banks and non-bank financial institutions, promotion
and development of domestic financial markets.
• Acting as banker to the Bangladesh government.
• Regulation and supervision of the payment system.
• Money laundering prevention.
• Implementation of Foreign Exchange Regulation Act.
• Managing a Deposit Insurance Scheme.
• Collection and furnishing of credit information.
