Professional Documents
Culture Documents
GROUP MEMBERS:
Bangladesh
Name ID
BANK
Mehryn Murshed 151 2966 660
Tahsin Hossain 152 1822 660
Mohammad Johny 161 2270 060
Maskuna Islam Shila 152 1592 660
Himel Roy 161 2415 060
Faculty Advisor:
Course: FIN- 644 Professor Dr. Prashanta k. Banerjeee
Section: 01
A central bank is a monopolized and often nationalized institution given privileged
control over the production and distribution of money and credit.
In the context of Bangladesh, the central bank is known as the Bangladesh Bank.
History: It was established in Dhaka as a body corporate vide, the Bangladesh Bank
Order, 1972 with effect from 16th December, 1971.
Branches: At present it has 10 offices located at
Motijheel, Sadarghat, Chittagong, Khulna, Bogra,
Rajshahi, Sylhet, Barisal, Rangpur and Mymensingh
in Bangladesh.
Staff: Total of 5,807 employees, of which officials
were 3,981 and subordinates were 1,826
Controlling inflation and credit
Central bank contain or stabilize the Inflation (CPI) with three anchor instruments.
i. Reserve Money (RM): Currency in Circulation + Bankers Deposits with BB + Other Deposits
with BB
ii. Broad Money (M2): In economics, broad money is a measure of the money supply that
includes more than just physical money such as currency and coins; it generally indicates
demand deposits at commercial banks.
iii. Domestic Credit: Lending or credit that central bank makes available to borrowers within
its own territory; this may include commercial banks and even involve the government itself.
In 2017, public sector credit reduced by 16.2% whereas private sector credit grew by 16%.
Neutrality of Money
A change in the stock of money affects
variables like prices, wages, and
Exchange Rate Stability exchange rates; while not affecting
- Pursue a stable exchange rate variables like employment, real GDP and
to attract foreign investments. real consumption.
- BB may regulate the money
supply to maintain this rate.
Control of Cyclical Fluctuations
- Monetary policy influences the
inflation.
- Inflation influences the business cycle
This facility of turning their assets into cash at short notice is of great
use to them and promotes in the banking and credit system economy,
elasticity and liquidity.
The lending of last resort function of
Bangladesh Bank the central bank imparts greater
liquidity and elasticity to the entire
credit structure of the country.
Lender of
Last Resort The essential duty of the central
bank as the lender of last resort is to
make good shortage of cash among
the competitive banks.
Member Banks
To control inflation and the credit growth
Besides CRR, Banks have to invest certain percentage of their deposits in specified
financial securities like Central Government or State Government securities. This
percentage is known as SLR.
SLR
80.5%
Penalty-
Penal Interest (Bank Rate plus 5%) and Penalty will be charged according to the
instructions of BB Order, 1972 and DOS Circular No. 03/2010 for CRR related issues.
BB Refinance Scheme
- Women and New Entrepreneur, Agro-Based Industry
School Banking (Financial Inclusion)
Green Banking
- Solar Energy, Bio-gas, ETP and Hybrid Hoffman Kiln (HHK) in
brick field
CSR Initiatives by Banks/NBFIs
-Education, Healthcare, Relief for Natural Calamity.
Financial Literacy