Transcript of "Function of commercial banks in bangladesh"
Function ofCommercial Banksin Bangladesh
Presented byMd. Atiqur RahmanDepartment of Electrical & Electronic EngineeringLeading University
Objective Of This Study What is Commercial Banking Functions of Commercial Banks in Bangladesh Activities of Commercial banks in Bangladesh Contribution of Commercial Banks in the EconomicDevelopment Role of Commercial Banks in 21st century
What is a Commercial BankingA commercial bank is- A type of financial institution & intermediary Provides transactional Savings Money market accounts and that accepts timedeposits
List of Commercial banks in Bangladesh United Commercial Bank Limited Mutual Trust Bank Limited BRAC Bank Limited Eastern Bank Limited Dutch Bangla Bank Limited Dhaka Bank Limited Islami Bank Bangladesh Ltd Uttara Bank Limited Pubali Bank Limited IFIC Bank Limited National Bank Limited The City Bank Limited NCC Bank Limited Prime Bank Limited Southeast Bank Limited Al-Arafah Islami Bank Limited Social Islami Bank Limited Standard Bank Limited One Bank Limited Exim Bank Limited Bangladesh Commerce Bank Limited First Security Islami Bank Limited The Premier Bank Limited Bank Asia Limited Trust Bank Limited Shahjalal Islami Bank Limited Jamuna Bank Limited ICB Islami Bank AB Bank Marcantile Bank Limited
Foreign Commercial Banks in Bangladesh Citibank HSBC Standard Chartered Bank Commercial Bank of Ceylon State Bank of India Habib Bank Limited National Bank of Pakistan Woori Bank Bank Alfalah ICICI Bank
Functions of Commercial Banks inBangladeshReceiving DepositsCurrentAccountSavingAccountFixedDepositAdvancing LoansMakingLoansShortTermLoansMediumTermLoansLongTermLoansBankOverdraftCashCreditDiscountingof Bills
Receiving DepositsThis is the main function of commercial banks to collectsavings of individuals and firms. They offer different typesof deposits for the facility of the customers.Current Account or Demand DepositsSaving AccountFixed Deposit
Current Account or Demand DepositsAny amount can be withdrawn from this accountat any time without any notice. No interest isallowed on this type of account.
Saving AccountThis type of deposit account which is usually heldby the middle class group. The saving accountcarries lower rate of interest.
Fixed DepositAmount cannot be withdrawn before the fixed futuredate in this type of deposit. High interest is allowed infixed deposit which is different according to period.
Advancing LoansThis is the important function of the commercialbank. Credit is given to the people in differentways.
Loan AccountThere are three types of loans given to borrowers.i. Short Term Loans:These loans are advanced for the period of six months to one year. HighInterest rateIs charged on this type of accounts.ii. Medium Term Loans:Loans from one to five years are called medium term loans.iii: Long Term Loans:Loans which are advanced for the period, more than ten years are longterm loans.
Bank OverdraftBanks allows their trustful customers to draw more thanthe deposit they have in the Bank. Bank charges interest onoverdraft.
Cash CreditBank also gives credit against immovable property andinterest is charged by the bank.
Discount of BillsThis is income source of bank to discount bills of exchange.They charge nominal Interest and discount only reputedand clear bills of exchange.
UnitedCommercial BankLimitedUCBL provides all general banking services to its clientsthrough its 110 branches all over the country. Savings andcurrent accounts, transfer of money, Western Union MoneyTransfer are some of the services UCBL presents.Deposit SchemesLoan and credit servicesRemittance servicesStock brokerage serviceInnovative ServicesSaturday Banking
AB Bank LimitedAB Bank Limited is the first private sector bank in Bangladesh.AB Bank provides-Retail BankingCorporate BankingSME BankingNRB BankingIslami BankingInvestment BankingMerchant BankingProject FinanceLoan SyndicationMoney TransferCustodial ServiceBrokerage Services
Islami Bank Bangladesh LtdAs a consumer bank Islami Bank Bangladesh Limited provideconsumer-LoansIslami deposit schemesATM Card servicesLockerBanking Services
Dutch-Bangla Bank LimitedStock ExchangeATM NetworksFast TrackInternet Payment GatewayMobile BankingDutch-Bangla Bank Limited (DBBL) is a scheduled join venture privatecommercial bank in Bangladesh.DBBL provide consumer-
Contribution of Commercial Bankin the Economic Development
Banks promote capital formationInvestment in new enterprisesPromotion of trade and industryDevelopment of agricultureBalanced development of different regionsInfluencing economy activityImplementation of Monetary policyMonetization of the economyExport promotion cells
The commercial banks are now not confined to localbanking. They are fast changing into global banking i.e.,understanding the global customer, using latestinformation technology, competing in the open marketwith high technology system, changing from domesticbanking to investment banking etc. The commercial bank are now considered the nervesystem of all economic development in the country.