overview of financial system and banking system in , financial system in bangladesh , role of bank , sources of income of banks , principles of commercial bank , function of banks

1. Overview of Financial System and
Banking System in Bangladesh.
WHAT IS BANK
A BANK IS FINANCIAL INTITUTION LICAENSED TO RECEIVE DEPOSITS AND MAKE LOANS.
BANKS MAY ALSO PROVIDE FIANCIAL SERVICES, SUCH AS WEALTH MANAGEM ENT ,
CURRENCY ECHANGE AND SAFE DEPOSIT BOXES.

2. Financial System in Bangladesh
CENTER BANK : A national bank that provide financial and banking services for its country government and
commercial banking system, as well as implementing government monetary policy and issuing curency.
Schedule bank : Schedule bank refers to the bank which are listed in center bank.
Non schedule bank: Non schedule bank refers to the bank which are not listed in center bank.
Commercial bank : Commercial bank is a financial institution which perfors the
functions of accepted deposit money from public giving loans for investment with the
aim of earning profit.
Specialized Bank : Specialized banks are banks which concentrate mainly on financial specializes
economic and social activities. Grameen bank
Private Commercial Bank : This types of commercial bank that are non government bank . 51% or
more share there

3. Nationalized commercial bank : This type of commercial bank control by government.
Conventional Banking : This type of banking that are basis of interest and think money is commodity
Shariah base banking : This type of banking that are basis of earing profit and do not that are basic of earning
profit and do not think is commodity.

4. Role of Bank
• Accept deposits
• Size transformation;
• Maturity transformation;
• Risk transformation.

5. Function of banks
Primary functions
• Accepting deposits
• Granting loans and advances
Secondary function
• Agency function
• Utility function

6. Commercial Bank:
Commercial bank which collecting deposit and lending money for the purpose of profit is called commercial bank.
Functions of Commercial Banking
1. Accepting deposits
2. Giving loans
3. Overdraft
4. Discounting of Bills of Exchange
5. Investment of Funds
6. Agency Functions

7. Principles of Commercial Bank
• Profitability
• Liquidity
• Safety
• Diversity
• Social good
• Loan and investment
• Principle of saving
• Priciple of services

8. Sources of Income of Banks
• Interest on loan
• Interest on investment
• Discount
• Commission, Brokerage, Atm etc.