Bangladesh Bank

Topics: Central bank, Monetary policy, Foreign exchange reserves Pages: 12 (3127 words) Published: August 1, 2010
Bangladesh Bank is the Central bank of Bangladesh. It is the monetary authority of the country. It came into existence under the Bangladesh Bank Order 1972 (Presidential Order No. 127 of 1972) which took effect on 16 December 1971. Through this order, the entire operation of the former State Bank of Pakistan in the eastern wing was transferred to Bangladesh Bank. Bangladesh Bank has 9 branch offices, two in Dhaka city (Sadarghat and Motijheel), and one each in Chittagong, Khulna, Rajshahi, Sylhet, Bogra, Rangpur and Barisal. The head office discharges its duties with 28 departments. * Objectives:

As the central Bank of Bangladesh, the broad objectives of the Bank are : * To regulate currency issuance and to keep foreign exchange reserves. * To manage the monetary and credit system of Bangladesh with a view to stabilizing domestic monetary value. * To preserve the par value of the Bangladeshi Taka.

* To promote and maintain a high level of production, employment and real income in Bangladesh; and to foster growth and development of the country's productive resources. * To reserve all the rights of the bank.

* Functions
Bangladesh Bank performs all the functions that a central bank of any country is expected to perform, and such functions include maintaining the price stability through economic and monetary policy measures, managing the country’s foreign exchange and the gold reserve and regulating the banking sector of the country. Like all other central banks across the globe, Bangladesh Bank is both the Government’s banker and the banker’s bank, a “Lender of the Last Resort”. Bangladesh Bank, like most of the central banks of different countries, exercises monopoly over the issue of currency and the banknotes. Except for the 1 and 2 taka notes, it issues all other denominations of Bangladeshi Taka. Bangladesh Bank is empowered to act as the watchdog of the country's banking system, and all scheduled banks are accountable to Bangladesh Bank, which has extensive powers to ensure soundness of the banking system. No bank can commence banking business in Bangladesh and no existing bank can open a new branch in or outside the country or shift any branch from one place to another without obtaining a license/permission from the Bangladesh Bank. * Organization

The highest official in the bank is the Governor (currently Dr. Atiur Rahman). The Governor chairs the Board of Director. The Executive Staff, also headed by the Governor, are responsible for the day to day affairs. * Information from the website:

Bangladesh Bank conducts a very informative and well built website. On the home page of Bangladesh Bank’s website, we find information on the following topics; * Publications:
Under the publications section, there are 6 more subheadings; * A monthly update of the major economic indicators: the information here has been published by the Monetary Policy Department of Bangladesh. The information is displayed in a detailed report format, and given in a separate file, usually a pdf file. The report describes the Monetary and credit developments in the recent month. It also shows the recent updates on: Reserve money developments, Liquidity position of scheduled banks, Agricultural credit, Industrial term loans, Outstanding position of SME loans, Public finance, Government tax revenue collections, Sale and repayment of NSD certificates, Budget financing, Capital market developments, Imports, Import payments, import L/C settlement and import LCs opened, Sector-wise fresh opening, settlement and outstanding L/Cs, Projected data on opening of import LCs and probable liabilities against BTB LCs of scheduled banks. Not only that the report also shows detailed recent developments in Bangladesh’s Exports, the annual and monthly trends in exports and also the category-wise break-down of exports. Moreover, the report has information on Remittances, Foreign exchange holdings abroad, Balance of payments,...

Links: * National
* Government
* Banks
* Financial Institutions (FIs)
* Micro Finance Institutions (MFIs)
* Others
* International
* Central Banks
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