Banking Industry in Bangladesh

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Banking Sector in Bangladesh

The Jews in Jerusalem introduced a kind of banking in the form of money lending before the birth of Christ. The word 'bank' was probably derived from the word 'bench' as during ancient time Jews used to do money -lending business sitting on long benches. First modern banking was introduced in 1668 in Stockholm as 'Svingss Pis Bank' which opened up a new era of banking activities throughout the European Mainland.  In the South Asian region, early banking system was introduced by the Afgan traders popularly known as Kabuliwallas. Muslim businessmen from Kabul, Afganistan came to India and started money lending business in exchange of interest sometime in 1312 A.D. They were known as 'Kabuliawallas'.  

Number and Types of Banks
The number of banks in all now stands at 49 in Bangladesh. Out of the 49 banks, four are Nationalised Commercial Banks (NCBs), 28 local private commercial banks, 12 foreign banks and the rest five are Development Financial Institutions (DFIs). Sonali Bank is the largest among the NCBs while Pubali is leading in the private ones. Among the 12 foreign banks, Standard Chartered has become the largest in the country. Besides the scheduled banks, Samabai (Cooperative) Bank, Ansar-VDP Bank, Karmasansthan (Employment) Bank and Grameen bank are functioning in the financial sector.The number of total branches of all scheduled banks is 6,038 as of June 2000. Of the branches, 39.95 per cent (2,412) are located in the urban areas and 60.05 per cent (3,626) in the rural areas. Of the branches NCBs hold 3,616, private commercial banks 1,214, foreign banks 31 and specialised banks 1,177.  

Bangladesh Bank (BB) regulates and supervises the activities of all banks. The BB is now carrying out a reform programme to ensure quality services by the banks.   

Bangladesh Bank
Bangladesh Bank (BB) has been working as the central bank since the country's independence. Its prime jobs include issuing of currency, maintaining foreign exchange reserve and providing transaction facilities of all public monetary matters. BB is also responsible for planning the government's monetary policy and implementing it thereby.  

The BB has a governing body comprising of nine members with the Governor as its chief. Apart from the head office in Dhaka, it has nine more branches, of which two in Dhaka and one each in Chittagong, Rajshahi, Khulna, Bogra, Sylhet, Rangpur and Barisal.  

Nationalised Commercial Banks (NCBs)
1. Sonali Bank
 9550426-34, 8614588 
2. Janata Bank
 9560072-80, 9560042-43 
3. Agrani Bank
 9566153-54, 9566160-69,9555179-80 
4. Rupali Bank
 9551624-25, 9554122, 9552183-4 
Private Commercial Banks (PCBs)
1. Pubali Bank
 9569050-2, 9551614-7 
2. Uttara Bank
 9566067-9,9551162-63, 9565732 
3. National     Bank Ltd.
 9563081-5, 9561201 
4. The City     Bank Ltd.
5. United     Commercial     Bank Ltd.
6.  Arab     Bangladesh Bank Ltd.
 95608878, 9560312-6 
7.  IFIC Bank       Ltd.
 9562062, 9563020-29 
8.  Islami bank       Bangladesh Ltd.
 9552897,-8, 9563040, 9563046-9 
9.   Al Baraka        Bank   Bangladesh  Ltd.
 9563768-9, 9565031-2 
10. Eastern Bank  Ltd.
11. National  Credit &  Commerce   Bank Ltd.
12. Prime Bank      Ltd.
 9567265-70, 9564677 
13. South East      Bank Ltd.
 9550081-5, 9551575, 9557714, 9551411 
14. Dhaka        Bank Ltd.
 9556587-10, 9556583, 
15. Al-Arafah Islami Bank Ltd.
16. Social       Investment        Bank Ltd.
 9559014, 9554855 
17. Dutch-      Bangla Bank Ltd.
18. Mercantile      Bank Ltd.
19. Standard       Bank Ltd.
 9667224, 9667802 
20. One Bank     Ltd.
 9564249, 7551799, 9564255-6 
21. EXIM Bank     
 9553925, 9553872, 9566418 
22.Bangladesh      Commerce       Bank Ltd.
 9559831-32, 9668170 
23. Mutual  Trust Bank Ltd.
 9569318, 7113239 
24.First Security       Bank Ltd.
 9560229, 9564733 
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