The document provides an overview of the banking system in Bangladesh. It defines what a bank and central bank are. It then lists and describes the major types of banks in Bangladesh, including the central bank (Bangladesh Bank), scheduled banks (state-owned commercial banks, specialized banks, private commercial banks, and foreign commercial banks), non-scheduled banks, non-bank financial institutions, and specialized financial institutions. It concludes by listing the major banks in each category.

1. What is a Bank ? Introduction
Finance is the life blood of trade, commerce and industry. Now-a-days, banking
sector acts as the backbone of modern business. Development of any country
mainly depends upon the banking system.
The term bank is either derived from old Italian word banca or from a French word
banque both mean a Bench or money exchange table. In olden days, European
money lenders or money changers used to display (show) coins of different
countries in big heaps (quantity) on benches or tables for the purpose of lending or
exchanging.
Oxford Dictionary defines a bank as "an establishment for custody of money,
which it pays out on customer's order."
A bank is a financial institution which deals with deposits and advances and other
related services. It receives money from those who want to save in the form of
deposits and it lends money to those who need it.
Characteristics / Features of a Bank ↓
1. Dealing in Money
Bank is a financial institution which deals with other people's money i.e. money
given by depositors.
2. Individual / Firm / Company
A bank may be a person, firm or a company. A banking company means a
company which is in the business of banking.
3. Acceptance of Deposit
A bank accepts money from the people in the form of deposits which are usually
repayable on demand or after the expiry of a fixed period. It gives safety to the
deposits of its customers. It also acts as a custodian of funds of its customers.
4. Giving Advances

2. A bank lends out money in the form of loans to those who require it for different
purposes.
5. Payment and Withdrawal
A bank provides easy payment and withdrawal facility to its customers in the form
of cheques and drafts, It also brings bank money in circulation. This money is in
the form of cheques, drafts, etc.
6. Agency and Utility Services
A bank provides various banking facilities to its customers. They include general
utility services and agency services.
7. Profit and Service Orientation
A bank is a profit seeking institution having service oriented approach.
8. Ever increasing Functions
Banking is an evolutionary concept. There is continuous expansion and
diversification as regards the functions, services and activities of a bank.
9. Connecting Link
A bank acts as a connecting link between borrowers and lenders of money. Banks
collect money from those who have surplus money and give the same to those who
are in need of money.
10. Banking Business
A bank's main activity should be to do business of banking which should not be
subsidiary to any other business.
11. Name Identity
A bank should always add the word "bank" to its name to enable people to know
that it is a bank and that it is dealing in money.

3. Types of Bank
Banks can be classified into various types on the basis of their functions,
ownership, domicile, etc. The following are the various types of banks:
1. Commercial Banks:
The banks, which perform all kinds of banking business and generally finance
trade and commerce, are called commercial banks. Since their deposits are for a
short period, these banks normally advance short-term loans to the businessmen
and traders and avoid medium-term and long-term lending.
However, recently, the commercial banks have also extended their areas of
operation to medium-term and long-term finance. Majority of the commercial
banks are in the public sector. However, there are certain private sector banks
operating as joint stock companies. Hence, the commercial banks are also called
joint stock banks.
2. Industrial Banks:
Industrial banks, also known as investment banks, mainly meet the medium-term
and long-term financial needs of the industries. Such long-term needs cannot be
met by the commercial banks, which generally deal with short-term lending.
The main functions of the industrial banks are:
(a) They accept long-term deposits.
(b) They grant long-term loans to the industrialists to enable them to purchase land,
construct factory building, purchase heavy machinery, etc.
(c) They help selling or even underwrite the debentures and shares of industrial
firms,
(d) They can also provide information regarding the general economic position of
the economy. In India, industrial hanks, like Industrial Development Bank of India,
Industrial Finance Corporation of India, Slate Finance Corporations, are playing
significant role in the industrial development of the country.

4. 3. Agricultural Banks:
Agricultural credit needs are different from those of industry and trade. Industrial
and commercial banks normally do not deal with agricultural finance. The
agriculturists require:
(a) short-term credit to buy seeds, fertilizers and other inputs, and
(b) long-term credit to purchase land, to make permanent improvements on land, to
purchase agricultural machinery and equipment, etc. In India, agricultural finance
is generally provided by co-operative institutions. Agricultural co-operatives
provide short-term loans and Land Development Banks provide the long-term
credit to the agriculturists.
4. Exchange Banks:
Exchange banks deal in foreign exchange and specialise in financing foreign trade.
They facilitate international payments through the sale, purchase of bills of
exchange, and thus play an important role in promoting foreign trade.
5. Saving Banks:
The main purpose of saving banks is to promote saving habits among the general
public and mobilize their small savings. In India, postal saving banks do this job.
They open accounts and issue postal cash certificates.
6. Central Bank:
Central bank is the apex institution, which controls, regulates and supervises the
monetary and credit system of the country. Important functions of the central bank
are:
(a) It has the monopoly of note issue;
(b) It acts as the banker, agent and financial adviser to the state;
(c) It is the custodian of member banks reserves;
(d) It is the custodian of nation's reserves of international currency;
(e) It serves as the lender of the last resort;

5. (f) It functions as the bank of central clearance, settlement and transfer; and
(g) It acts as the controller of credit. Besides these functions, India's central bank,
i.e., the Reserve Bank of India, also performs many developmental functions to
promote economic development in the country.
7. Classification on the Basis of Ownership:
On the basis of ownership, banks can be classified into three categories:
(a) Public Sector Banks:
These arc owned and controlled by the government. In India, the nationalized
banks and the regional rural banks come under these categories,
(b) Private Sector Banks:
These banks are owned by the private individuals or corporations and not by the
government or co-operative societies,
(c) Cooperative Banks:
Cooperative banks are operated on the cooperative lines. In India, cooperative
credit institutions are organized under the cooperative societies law and play an
important role in meeting financial needs in the rural areas.
8. Classification on the Basis of Domicile:
On the basis of domicile, the banks are divided into two categories:
(a) Domestic Banks:
These are registered and incorporated within the country,
(b) Foreign Banks:
These are foreign in origin and have their head offices in the country of origin.

6. 9. Scheduled and Non-Scheduled Banks:
In India, banks have been broadly classified into scheduled and non-scheduled
banks. A Scheduled Bank is that which has been included in the Second Schedule
of the Reserve Bank of India Act, 1934 and fulfills the three conditions
(a) it has paid-up capital and reserves of at least Rs. 5 lakhs. It ensures the Reserve
Bank that its operations are not detrimental to the interest of the depositors;
(c) It is a corporation or a cooperative society and not a partnership or a single
owner firm. The banks which are not included in the Second Schedule of the
Reserve Bank of India Act are non-scheduled banks.
What is central Bank ?
A central bank is an independent national authority that conducts monetary
policy, regulates banks, and provides financial services including economic
research. Its goals are to stabilize the nation's currency, keep unemployment
low and prevent inflation.
Most central banks are governed by a board consisting of its member banks.
The country's chief elected official appoints the director.
The national legislative body approves him or her. That keeps the central
bank aligned with the nation's long-term policy goals. At the same time, it's
free of political influence in its day-to-day operations. The Bank of England
first established that model. For more on the central bank of the United
States.
Activities and responsibilities
Functions of a central bank may include:
 Implementing monetary policies.
 Setting the official interest rate – used to manage both inflation and the country's
exchange rate – and ensuring that this rate takes effect via a variety of policy mechanisms
 Controlling the nation's entire money supply
 The Government's banker and the bankers' bank ("lender of last resort")
 Managing the country's foreign exchange and gold reserves and the Government's stock
register
 Regulating and supervising the banking industry

7. List of banks in Bangladesh
From Wikipedia, the free encyclopedia
Bangladesh Bank is the central bank of Bangladesh and the chief regulatory
authority in the banking sector. The banking sector in Bangladesh consists of
several types of institution:
Contents
 1 Central bank
 2 Scheduled Banks
o 2.1 State Owned Commercial Banks
o 2.2 Specialized Banks
o 2.3 Private Commercial Banks
o 2.4 Foreign Commercial Banks
 3 Non-Scheduled Banks
 4 Non Bank Financial Institutions
 5 Specialized Financial Institutions (Semi Formal Sector)
1. 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 16
December 1971.
2. Scheduled Banks
Secheduled Banks are licensed under the Bank Company Act, 1991 (Amended up
to 2013).
2.1 State Owned Commercial Banks
1. Agrani Bank Limited
2. Janata Bank Limited

8. 3. Rupali Bank Limited
4. Sonali Bank Limited
5. Bangladesh Development Bank
6. BASIC Bank Limited
2.2 Specialized Banks
1. Bangladesh Krishi Bank
2. Bangladesh Samabaya Bank Ltd
3. Rajshahi Krishi Unnayan Bank (RAKUB)
4. Ansar-VDP Unnayan Bank
5. Karmasangsthan Bank
6. Probashi Kallyan Bank
7. Palli Sanchay Bank
2.3 Private Commercial Banks
 Conventional Commercial Banks
1. AB Bank Limited
2. Bangladesh Commerce Bank Limited
3. Bank Asia Limited
4. BRAC Bank Limited
5. City Bank Limited
6. Dhaka Bank Limited
7. Dutch-Bangla Bank Limited
8. Eastern Bank Limited
9. IFIC Bank Limited
10.Jamuna Bank Limited
11.Meghna Bank Limited
12.Mercantile Bank Limited
13.Midland Bank
14.Modhumoti Bank Limited
15.Mutual Trust Bank Limited
16.National Bank Limited
17.National Credit & Commerce Bank Limited
18.NRB Bank Limited
19.NRB Commercial Bank Limited

9. 20.NRB Global Bank Limited
21.One Bank Limited
22.Premier Bank Limited
23.Prime Bank Limited
24.Pubali Bank Limited
25.South Bangla Agriculture & Commerce Bank Limited
26.Southeast Bank Limited
27.Standard Bank Limited
28.The Farmers Bank Limited
29.Trust Bank Limited
30.United Commercial Bank Limited
31.Uttara Bank Limited
32.Shimanto Bank Ltd
 Islamic Shariah based Commercial Banks
1. Al-Arafah Islami Bank Limited
2. EXIM Bank Limited
3. First Security Islami Bank Limited
4. ICB Islamic Bank Limited
5. Islami Bank Bangladesh Limited
6. Shahjalal Islami Bank Limited
7. Social Islami Bank Limited
8. Union Bank Limited
2.4 Foreign Commercial Banks
1. Bank Al-Falah Limited
2. Citibank N.A
3. Commercial Bank of Ceylon PLC
4. Habib Bank Limited
5. National Bank of Pakistan
6. Standard Chartered Bank
7. State Bank of India
8. Woori Bank
9. HSBC Bank
3. Non-Scheduled Banks

10. Non-Scheduled Banks are licensed only for specific functions and objectives, and
do not offer the same range of services as scheduled banks.[1]
1. Grameen Bank
2. Jubilee Bank
4. Non Bank Financial Institutions
1. Investment Corporation of Bangladesh
2. Agrani SME Financing Company Limited
3. Bangladesh Finance and Investment Company Limited
4. Bangladesh Industrial Finance Company Limited
5. Bangladesh Infrastructure Finance Fund Limited
6. Bay Leasing and Investment Limited
7. CAPM Venture Capital and Finance Limited
8. Delta Brac Housing Finance Corporation Limited
9. Far-east Finance & Investment Limited
10.FAS Finance & Investment Limited
11.First Finance Limited
12.GSP Finance Company (Bangladesh) Limited
13.Hajj Finance Company Limited
14.IDLC Finance Limited
15.Industrial and Infrastructure Development Finance Company Limited
16.Industrial Promotion and Development Company of Bangladesh Limited
17.Infrastructure Development Company Limited
18.International Leasing and Financial Services Limited
19.Islamic Finance and Investment Limited
20.LankaBangla Finance Limited
21.Meridian Finance and Investment Limited
22.MIDAS Financing Limited
23.National Finance Limited
24.National Housing Finance and Investments Limited
25.People's Leasing and Financial Services Limited
26.Phoenix Finance and Investments Limited
27.Premier Leasing & Finance Limited
28.Prime Finance & Investment Limited
29.Reliance Finance Limited
30.Saudi-Bangladesh Industrial & Agricultural Investment Company Limited

11. 31.SEAF Bangladesh Venture Limited
32.The UAE-Bangladesh Investment Company Limited
33.Union Capital Limited
34.United Finance Limited
35.Uttara Finance and Investments Limited
5. Specialized Financial Institutions (Semi Formal Sector)
 House Building Financial Corporation (HBFC)
 Palli Karma Sahayak Foundation (PKSF)