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Assignment -2

List of Depository & Non-depository Financial Institutions in Bangladesh


Course Instructor : Financial Market and Institutions

Course Code : FIN 6402 Prepared for

Dr. Jannatul Ferduse

Assistant Professor

Faculty of Business Studies

Bangladesh University of Professionals Prepared by

Md. Mahmudul Hasan

ID- M1415044

MBA (Batch 15)


Bangladesh University of Professionals

Mirpur-12, Dhaka

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Table of Contents

Overview of Financial system of Bangladesh

Financial Institute

Classification of Financial Institutions Overview Bangladesh Bank List of depository


institutions in Bangladesh:

a. Commercial Bank

1.

State Owned Commercial Banks

11

2.
Specialized Banks

11

3.

Private Commercial Banks

12
13

4.

Islami Shariah based

11

5.

Foreign Commercial Banks


12

b. Credit unions

List Non-depository institutions of Bangladesh


a.

Finance companies

15
16

b.

Mutual funds
16
17

c.

Insurance companies
17
19

Referance
20

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Table of Contents

Overview of Financial system of Bangladesh

Financial Institute

Classification of Financial Institutions Overview Bangladesh Bank List of depository


institutions in Bangladesh:

a. Commercial Bank

1.

State Owned Commercial Banks

11

2.
Specialized Banks

11

3.

Private Commercial Banks

12
13

4.

Islami Shariah based

11

5.

Foreign Commercial Banks


12

b. Credit unions

List Non-depository institutions of Bangladesh


a.

Finance companies

15
16

b.

Mutual funds
16
-

17

c.

Insurance companies
17
19

Referance
20

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Overview of Financial system of Bangladesh


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
jurisdiction 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 (NGOs and discrete
government programs. The
informal sector
includes private intermediaries which are completely unregulated.

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Financial Institute:
A financial institution is an institution that provides financial services for its clients
or members. One of the most important financial services provided by a financial

institution is acting as a financial intermediary. Most financial institutions are


regulated by the government. Deposit-taking institutions that accept and manage
deposits and make loans (this category includes banks, credit unions, trust
companies, and mortgage loan companies); Insurance companies and pension
funds; and Brokers, underwriters and investment funds. Financial institutions
provide service as intermediaries of the capital and debt markets. They are
responsible for transferring funds from investors to companies, in need of those
funds. The presence of financial institutions facilitate the flow of money through the
economy. To do so, savings are pooled to mitigate the risk brought to provide funds
for loans. Such is the primary means for depository institutions to develop revenue.
Should the yield curve become inverse, firms in this arena will offer additional feegenerating services including securities underwriting, and prime brokerage. A
financial institution is an establishment that conducts financial transactions such as
investments, loans and deposits. Almost everyone deals with financial institutions
on a regular basis. Everything from depositing money to taking out loans and
exchanging currencies must be done through financial institutions.
Classification of Financial Institutions
In financial market there are many types of financial institutions or intermediaries
exist for the flow of funds. Some of them involve in depositary type of transactions
whereas other involve in non-depositary type of transactions. The type of financial
institutions can be divided into two types as follows:
1.

Depository Institutions
A depository institution is a financial institution in the United States (such as a
savings bank, commercial bank, savings and loan associations, or credit unions)
that is legally allowed to

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accept monetary deposits from consumers. Federal depository institutions are


regulated by the Govt.

Role of Depository Institutions:


Depository institutions accept deposits from surplus units and provide credit to
deficit units through loans and purchases of securities. They are popular financial
institutions for the following reasons:

They offer deposit accounts that can accommodate the amount and liquidity
characteristics desired by most surplus units.

They repackage funds received from deposits to provide loans of the size and
maturity desired by deficit units.

They accept the risk on loans provided.

They have mare expertise than individual surplus units in evaluating the credit
worthiness of deficit units.

They diversify their loans among numerous deficits units and therefore can absorb
defaulted loans better than individual surplus units could. The depository types of
financial institutions include banks, credit unions, saving and loan associations and
mutual saving banks
* Commercial banks
Commercial banks are those financial institutions, which help in pooling the savings
of surplus units and arrange their productive uses. They basically accept the
deposits from individuals and institutions, which are repayable on demand. These
deposits from individuals and institutions are invested to satisfy the short-term
financing requirement of business and industry.

* Credit Unions
Credit unions are cooperative associations where large numbers of people are
voluntarily associated for savings and borrowing purposes. These individuals are the
members of credit

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unions as they make share investment along with deposits. The saving generated
from these members are used to lend the members of the union only.
* Saving And Loan Associations
Saving and loan associations are the financial institutions involved in collecting
funds of many small savers and lending these funds to home buyers and other
types of borrowers.
* Mutual Saving Banks
Mutual saving banks are more or less similar to saving and loan associations. They
primarily accepts savings of individuals and they are lent to the home users and
consumers on a long-term basis.
2.

Non-depository Institutions
Non-depository institutions are not banks in real sense. They make contractual
arrangement and investment in securities to satisfy the needs and preferences of
investors. The non-depository institutions include insurance companies, pension
funds, finance companies and mutual funds.
* Insurance Companies

Insurance companies are the contractual saving institutions which collect periodic
premium from insured party and in return agree to compensate against the risk of
loss of life and properties.
* Pension/Provident Funds
Pension funds are financial institutions which accept saving to provide pension and
other kinds of retirement benefits to the employees of government units and other
corporations. Pension funds are basically funded by corporation and government
units for their employees, which make a periodic deposit to the pension fund and
the fund provides benefits to associated employees on the retirement. The pension
funds basically invest in stocks, bonds and other type of long-term securities
including real estate.

Overview of Financial system of Bangladesh


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
jurisdiction 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 (NGOs and discrete
government programs. The
informal sector
includes private intermediaries which are completely unregulated.

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5.

Bangladesh General Insurance Co. Ltd. 6.

Bangladesh National Insurance Co.Ltd. 7.

Central Insurance Company Ltd. 8.

City Gen. Insurance Company Ltd. 9.

Continental Insurance Ltd. 10.

Crystal Insurance Company Ltd. 11.

Desh Gen. Insurance Company Ltd. 12.

Eastern Insurance Company Ltd. 13.

Eastland Insurance Company Ltd. 14.

Express Insurance Ltd. 15.

Federal Insurance Company Ltd. 16.

Global Insurance Ltd. 17.

Green Delta Insurance Co. Ltd. 18.

Islami Commercial Insurance Co. Ltd. 19.

Islami Insurance Bangladesh Ltd. 20.

Janata Insurance Company Ltd. 21.

Karnaphuli Insurance Company Ltd. 22.

Meghna Insurance Company Ltd. 23.

Mercantile Insurance Company Ltd. 24.

Nitol Insurance Company Ltd. 25.

Northern Gen.Insurance Company Ltd. 26.

Peoples Insurance Company Ltd. 27.

Phonix Insurance Company Ltd. 28.

Pioneer Insurance Company Ltd. 29.

Pragati Insurance Ltd. 30.

Pramount Insurance Company Ltd. 31.

Prime Insurance Company Ltd. 32.

Provati Insurance Company Ltd. 33.

Purabi Gen Insurance Company Ltd. 34.

Reliance Insurance Ltd. 35.

Republic Insurance Company Ltd. 36.

Rupali Insurance Company Ltd. 37.

Sonar Bangla Insurance Company Ltd.

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38.

South Asia Insurance Company Ltd. 39.

Standard Insurance Ltd. 40.

Takaful Islami Insurance Ltd. 41.

Dhaka Insurance Ltd. 42.

Union Insurance Company Ltd. 43.

United Insurance Company Ltd.


LIST OF LIFE INSURANCE COMPANIES
1.

American Life Insurance Company (Foreign Company) 2.

Baira Life Insurance Company Ltd. 3.

Delta Life Insurance Company Ltd. 4.

Farest Islami Life Insurance Co. Ltd. 5.

Golden Life Insurance Ltd. 6.

Homeland Life Insurance Company Ltd. 7.

Meghna Life Insurance Company Ltd. 8.

National Life Insurance Company Ltd. 9.

Padma Islami Life Insurance Company Ltd. 10.

Popular Life Insurance Company Ltd. 11.

Pragati Life Insurance Ltd. 12.

Prime Islami Life Insurance Company Ltd. 13.

Progressive Life Insurance Company Ltd. 14.

Rupali Life Insurance Company Ltd. 15.

Sandhani Life Insurance Company Ltd. 16.

Sunflower Life Insurance Company Ltd. 17.

Sunlife Insurance Company Ltd.


LIST OF THE INSURANCE COMPANIES IN PUBLIC SECTOR
1.

Sadharan Bima Corporation(Gen. Ins) 2.

Jiban Bima Corporation (Life Ins.)

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Reference
1.

Class Lecture:
BUP Regular Class Lecture and Hand out.
Asst.Prof. dr. Jannatul Ferduse, Faculty of Business Studis Bangladesh University of
Professionals. 2. Book:

Financial Markets and Institutions JEFF MADURA. 3.

Bangladesh Bank:
Website
https://www.bb.org.bd/ 4.

Bangladesh Securities and Exchange Commission

http://www.sec.gov.bd/