Central Banking & Regulations (BNKG 4302)

1. Financial System of Bangladesh

Markets (Money Market, Capital Market & Foreign Exchange Market), Regulators (BB, BSEC, MRA, IDRA),
Banks in Bangladesh, NBFIs in BD, Difference between Bank & NBFI, Recent Developments in Financial
Sector of Bangladesh (Technological, Institutional & Regulatory Developments)
2. Central Bank
Evolution of Central Banks, Events Contributing to Develop Various Roles, Functions of Central Banks,
Principles of modern central bank operations, Departments of BB, Central Bank Independence
3. Monetary & Fiscal Policy
Considerable Factors in Monetary Policy Formulation, MP Types, Policy Tools, MP in Developing Countries,
Zero Bound MP, Money Multiplier, Monetary Policy in BD, Monetary Survey, Money in Circulation,
Monetary Financing, Treasury Bill/Bond Auction & Repo/Reverse Repo in BD, Crowding Out Effect
4. Reserve Management
Reserve and its Components, Guiding Principles of Reserve Management, Reserve Adequacy
5. Bangladesh Bank Order 1972
Important Sections
6. Banking Supervision
Reasons for supervising banks, Mechanisms used to supervise banks
7. Basel Regulations
History of Basel (Basel I, II & III), Pillars of Basel II, Regulatory/Eligible Capital, ECAI, Risk Weights for Assets,
Supervisory Review Process (SRP), Market Discipline (MD), Implementation of Basel II: Effects, Challenges,
and Risks, New Requirements under Basel III compared To Basel II, Phase-in arrangements for Basel III
8. Loan Classification, Provisioning and Rescheduling
Categories of Loans and Advances, Basis for Loan Classification, Accounting of the Interest of Classified
Loans, Maintenance of Provision, Base for Provision, Eligible Collateral, Reporting, Guidelines for
Considering Application for Loan Rescheduling, Time Limit for Rescheduling, Down Payment, Classification
and Interest Suspense of Rescheduled Loans, New Loan Facility after Rescheduling, Special Conditions for
Loan Rescheduling, Restriction on Extending Term to Maturity of a Term Loan
9. Foreign Exchange Regulation
Objectives of Regulating Forex Transactions, Deregulatory Measures taken by BB, Regulations Governing
Foreign Exchange Transactions in BD, Related Organizations and Their Major Roles, FER Act and Power of
BB, Necessity of Supervising Forex, Departments in BB Relating with Fx Regulation and Fx Monitoring and
their Major Functions, Submission of Returns, Frequently Asked Q&A: Rules of Fx Transactions in various
sectors of BD
10. CAMELS Rating
Performance Ratings, Individual Ratings for Components of CAMELS, Composite Ratings
11. Anti Money Laundering and Terrorist Financing Issues
Stages of Money Laundering, Reasons for Money Laundering, Necessity of combating Money laundering,
Predicate Offences, KYC (Know Your Customer), TP (Transaction Profile), Risk Grading, PEP (Politically
Exposed Persons), CTR & STR
12. Green Banking
Policy Guidelines for Green Banking, BRPD Circular No.02, February 27, 2011
13. SLR (Statutory Liquidity Requirement) and CRR (Cash Reserve Ratio)
Rates for Banks & NBFIs, Eligible Liquid Assets, Submission of Returns, Penalty
14. BACH (Bangladesh Automated Clearing House)
Features of BACH, Type of Functions in BACPS, Superiority of BACH over Manual System, BEFTN- Features,
Deposit & Payment Entries, Advantages
15. Prudential Regulation for Banks: Selected Issues
Deposit Insurance Scheme, Bank Charges, Financial Inclusion, Single Borrower Exposure, Writing off Loans,
Interest Rates on Deposit & Lending etcetera.