The financial system of
Bangladesh
Bangladesh (}, ), officially the People's Republic of Bangladesh, is a country in South Asia. It is the eighth-most populous country in the world, with a population exceeding 165 million people in an area of . Bangladesh is among the mos ...
consists of three broad sectors.
[{{cite web , title=Financial System , url=https://www.bb.org.bd/fnansys/index.php , website=www.bb.org.bd , access-date=25 April 2019] They are
# Formal sector
# Semi-formal sector
# 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 jurisdiction of
Central Bank
A central bank, reserve bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union,
and oversees their commercial banking system. In contrast to a commercial bank, a central ba ...
, 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
Grameen Bank ( bn, গ্রামীণ ব্যাংক) is a microfinance organisation and community development bank founded in Bangladesh. It makes small loans (known as microcredit or "grameencredit") to the impoverished without requi ...
etc.,
Non-governmental organization
A non-governmental organization (NGO) or non-governmental organisation (see spelling differences) is an organization that generally is formed independent from government. They are typically nonprofit entities, and many of them are active in h ...
s (NGOs) and discrete government programs.
The informal sector includes private intermediaries which are completely unregulated.
Formal sector
The formal sector of the financial system of Bangladesh comprises two sub-sectors which are,
#Financial Market
#Regulators & Institutions
Financial market
There are three types of financial markets in Bangladesh. They are:
#Money Market : Banks, Non-bank Financial Institutions, and Primary Dealers
#Capital Market : Investment Banks, Credit Rating Companies, and Stock Exchanges
#Foreign Exchange Market : Authorized Dealers.
Regulators and institutions
Bangladesh bank(Central Bank of Bangladesh):
regulate 61 scheduled & 5 non-scheduled banks, 34 Non-Banking Financial Institutions (NBFIs)
Bangladesh securities and exchange commission:
Stock Exchanges, Stock Dealers & Brokers, Merchants Banks, Asset Management Company (AMCs), Credit Rating Agencies etc.
Insurance Development & Regulatory Authority(IDRA)
18 Life and 44 Non-Life Insurance Companies
Microcredit Regulatory Authority(MRA)
599 Micro Finance Institutions (MFIs)
Semi-formal sector
The semi formal sector comprises some Specialized Financial Institutions:
#
House Building Financial Corporation(HBFC)
#
Palli Karma Sahayak Foundation
Palli Karma Sahayak Foundation or PKSF is a financial institution founded by the Government of Bangladesh to finance rural development and provide training and is located in Dhaka, Bangladesh. Dr Qazi Kholiquzzaman Ahmad is the Chairman of Palli ...
(PKSF).https://www.pksf-bd.org/portal/
#
Samabay Bank
#
Grameen Bank
Grameen Bank ( bn, গ্রামীণ ব্যাংক) is a microfinance organisation and community development bank founded in Bangladesh. It makes small loans (known as microcredit or "grameencredit") to the impoverished without requi ...
Informal sector
The informal sector includes private intermediaries which are completely unregulated.
References