Bank

An organization, usually a corporation, chartered by a state or federal

government, which does most or all of the following: receives demand
deposits and time deposits, honors instruments drawn on them, and
pays interest on them; discounts notes, makes loans, and invests in
securities; collects checks, drafts, and notes; certifies depositor's
checks; and issues drafts and cashier's checks.
List of banks in Bangladesh
The commercial banking system dominates Bangladesh's financial
sector. Bangladesh Bank is the Central Bank of Bangladesh and the
chief regulatory authority in the sector. The banking system consists of
four nationalized commercial Banks, around forty private commercial
banks, nine foreign multinational banks and some specialized banks.
The Nobel-prize winning Grameen Bank is a specialized micro-finance
institution, which revolutionized the concept of micro-credit and
contributed greatly towards poverty reduction and the empowerment
of women in Bangladesh.
Central Bank (Bangladesh Bank)
Pursuant to Bangladesh Bank Order, 1972 the Government of
Bangladesh reorganized the Dhaka branch of the State Bank of
Pakistan as the central bank of the country, and named it Bangladesh
Bank with retrospective effect from 16th December, 1971.
Nationalized Commercial Banks
The banking system of Bangladesh is dominated by the 4 Nationalized
Commercial Banks, which together controlled more than 54% of
deposits and operated 3388 branches (54% of the total) as of
December 31, 2004[1]. The nationalized commercial banks are:
1.
2.
3.
4.

Sonali Bank
Janata Bank
Agrani Bank
Rupali Bank

Private Commercial Banks

Private Banks are the highest growth sector due to the dismal
performances of government banks (above). They tend to offer better
service and products.
AB Bank Limited
BRAC Bank Limited
Eastern Bank Limited

Dutch Bangla Bank Limited

Dhaka Bank Limited
Islami Bank Bangladesh Ltd
Pubali Bank Limited
Uttara Bank Limited
IFIC Bank Limited
National Bank Limited
The City Bank Limited
United Commercial Bank Limited
NCC Bank Limited
Prime Bank Limited
SouthEast Bank Limited
Al-Arafah Islami Bank Limited
Social Investment Bank Limited
Standard Bank Limited
One Bank Limited
Exim Bank Limited
Mercantile Bank Limited
Bangladesh Commerce Bank Limited
Mutual Trust Bank Limited
First Security Bank Limited
The Premier Bank Limited
Bank Asia Limited
Trust Bank Limited
Shahjalal Bank Limited
Jamuna Bank Limited
Foreign Banks
Citigroup
HSBC
Standard Chartered Bank
Commercial Bank of Ceylon
State Bank of India
Habib Bank
National Bank of Pakistan
Woori Bank
Bank Alfalah
ICB Islami Bank
Specialized Banks
Out of the specialized banks, two (Bangladesh Krishi Bank and Rajshahi
Krishi Unnayan Bank) were created to meet the credit needs of the
agricultural sector while the other two (Bangladesh Shilpa Bank (BSB)
& Bangladesh Shilpa Rin Sangtha (BSRS) are for extending term loans
to the industrial sector. The Specialized banks are:
Grameen Bank

Bangladesh Krishi Bank

Bangladesh Shilpa Bank
Rajshahi Krishi Unnayan Bank
Bangladesh Shilpa Rin Sangstha
Basic Bank Ltd (Bank of Small Industries and Commerce)
Bangladesh Somobay Bank Limited(Cooperative Bank)
The Dhaka Mercantile Co-operative Bank Limited (DMCBL)
Banking System around the world
In the prevailing world, commercial bank management systems are
more or less similar in principle. Dissimilarities exist in the scope of
commercial bank activities in different countries.
1. Anglo-American Banking System: This system is prevalent in most of
the countries in the world along with Bangladesh. There are differences
between commercial banking and investment banking. Commercial
banks cannot operate investment banking activities. This is why
separate investment/merchant banks are established in these
countries for the operation of the investment banking activities. The
relationship between commercial banks and corporate houses will
creditor and client relationship but not the owner relationship.
2. German Universal Banking System: This system is prevalent only in
Germany. There is no difference between commercial banking and
investment banking in this system. Commercial bank can operate any
type of business activities and can buy up to 40% shares of corporate
firms as well as participate in the ownership of the firm. Here
commercial banks act in two ways-firstly as creditor and secondly as
owner. This system is also known as relationship banking.
3. Japanese Main Banking System: This system is closely related to the
relationship banking. Here, there are differences between investment
banking and commercial banking but commercial banks have no
restriction to participate in the ownership of corporate firms. This is
system is also referred as hybrid form of above two systems. That is,
banks cannot participate in the investment banking activities but can
buy 5% shares of any company and participate in the ownership. In
this system bank can monitor the companies as owner and creditor.
4. Indian Lead Banking System: It was developed in India in 1960. Here
every leas bank performs extra responsibilities with the existing
commercial banking system. This system divides the countrys
geographical area in different segments and only one leader bank is
selected for each area. All of the commercial banks and other financial

institutions are directed according to the advice and guidelines of the

lead bank.
Banking Issues in the 21st Century
Phase one: this phase is bank oriented where external finance is raised
through bank loans.
Phase two: this phase is market oriented. Households and institutional
investors begin to hold more securities and equity.
Phase three: here trading, underwriting, advising etc become more
important for banks than the traditional core banking functions.
Rational of increasing importance of bank management
The only way to achieve handsome amount of profit compared to
similar kind of organization is to establish skilled and efficient
management in any organization. Since bank is a profit oriented
organization, its management procedure is more challenging as
regulatory system always is there to control the bank management.
1. Changing regulations for banks:
Earlier it was observed that a lot of banks around the world failed due
to the economic recession. As such, a lot of depositors suffered since
the did not get their money back. Following such condition, deposit
insurance scheme was mandatory for banks to protect the interest of
depositors. Later on different regulations adopted from various angles.
2. Increasing
development:

competition

due

to

3. Changing international relationship

changing

technological