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Introduction
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. In the South Asian region,
early banking system was introduced by the Afghan traders popularly known as
Kabuliwallas. Muslim businessmen from Kabul, Afghanistan came to India and started
money lending business in exchange of interest sometime in 1312 A.D. They were known
as Kabuliwalla.
Bank
A bank is a financial intermediaries a dealer in loans & debts. It is an office or institution
for the keeping, lending and exchanging etc. of money. In the shortest term, a bank could
define as a financial institution that deals with money and credit.
Finally, we can say that, a bank is an establishment for deposit, custody and issue of
money and for granting loans, discounting bills and facilitating transmission of
remittance from one place to another
Number & types of bank
The number of banks in all now stands at 49 in Bangladesh. Out of the 49 banks, four are
Nationalized Commercial Banks (NCBs), 28 local private commercial banks, 12 foreign
banks and the rest five are Development Financial Institutions.
Central bank
Central bank is an institution charged with the responsibility of managing the expansion
and contraction of the volume of money in the interest of the general public welfare.
Bangladesh Bank 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. Bangladesh bank is also
responsible for planning the government's monetary policy and implementing it.

Services provided by bank

Current Account
Generally this sort of account opens for business purpose. Customers can withdraw
money once or more against their deposit.
Savings Bank Account
Usually customers open this sort of account at a low interest for only security. This is also
an initiative to create people's savings tendency.

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Special services
Some Banks offer special services to the customers attracting then others.

Internet banking facilities are provided for the customer. Customer would be
given specific ID & password where they maintain and view account balance in
online.
Automated Teller Machine (ATM), a new concept in modern banking, has been
introduced to facilitate subscribers 24 hour cash access through a plastic card.

Tele Banking allows customers to get access into their respective banking
information 24 hours a day.

Electronic banking services are developing tools in the overall banking services
delivery system.

Credit card & debit card is being introduced for meeting customer satisfaction.

Home banking is being established where no need to visit branches rather then to
check their account activities transfer fund and to open L/C sitting in their own
desk

Lackings
In spite of having so many facilities in some cases there would been some problems due
to poor macro economy & political instabilities. "The Bangladeshi Banking System", that
the banking system is undermined by very weak asset quality, inadequate provisioning
for loan losses, poor capitalisation and constrained profitability. The weakness in the
operating environment is further exacerbating by frequent natural disasters.

Recommendations
Bank is already a very profitable and organized institution for our country. The following
recommendation could be judged and applied for the banking system betterment:

Political stability and proper operating environment should been ensured.

Necessary training should be provided to upgrade the efficiency of the officers in
measuring risk and in selecting the profitable projects.
Credit policy should be revised with the current economic situation.

To fulfill the vision of this Bank should grant investment portfolio to new
entrepreneurs /new businessmen new companies etc.

Introduce modern banking facilities such as credit card, telephone banking, and
internet banking as soon as possible.

Clearing house should work properly.

Credit policy for commercial bank should make flexible.
The bank should immediately revise its tariffs to retain its customers

Conclusion
In fine we can say that banking system in Bangladesh is probably in a good position. But
in the world depression as a developed country in South Asia it might be hampered the
total monetary policy. As prediction of our economist at the end of 2009 it would be a
depression situation will be faced for our economy. In these cases banking system should
be revised and the government should take proper steps to control the situation. In this
way we can face world depression and also a modern well established banking system.
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